US dollar remains in demand

US dollar remains near an 11-year high versus a basket of major currencies as investors await today’s US economic data (ISM Services PMI, ADP employment report, Beige book) and a ECB’s meeting on Thursday. EUR/USD has edged down to 1.1160. USD/CHF is above 0.9600.

USD/JPY is trading in the 119.60 area after it failed to hold above 120.00 on Tuesday. The pair was tempered by the decline in Japanese equities during the Asian session and the preceding drop in US shares. In addition, the Bank of Japan’s official said that Japan's economic fundamentals have improved over past 2 years.

AUD/USD is holding above 0.7800. Australian GDP rose by 0.5% q/q in Q4. That’s a bit higher growth than in the previous 3 months, but below the not so high forecasts and below trend.